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tv   MONEY With Melissa Francis  FOX Business  October 4, 2012 5:00pm-6:00pm EDT

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>> what we're seeing right now in my view is a trickle down government approach which has government thinking it can do a better job than free people pursuing their dreams and it's not working. and the proof of that is 23 million people out of work. melissa: republican presidential candidate mitt romney on the attack, unemployment is too high and more government just is not the answer. supporters on both sides agree romney crushed in the debate but will it add up to votes? karl rove here to break it down. money tonight, gas shortage in california. prices skyrocket.
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stations close. will it spread across the country? we have details. i'm getting serious about the saving the post office. i'm the turnaround specialist who can avoid a $11 billion default. i'm offering my services to the postmaster general. he is here in a fox business exclusive. even when they say it's not you know it is always about money. melissa: first let's take a look at the market headlines. all three major indices close in the green. all 10 sectors in the s&p finished on the plus side for a fourth straight day of gains. cisco names new number two. gary moore named president and chief operating officer. ceo john chambers says he will stay in his position between two and four more years. jobless claims rose slightly this week, climbing by 4,000 to 367,000. we're all going to be watching tomorrow morning
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when the government releases its monthly unemployment numbers for september. that is a big one. don't miss it. now to our top story, was it a slam dunk for mitt romney? following his debate performance last night many critics pegging him the winner. seems early for that. was it strong enough to gain lasting momentum until the election? here to break it down, fox news contributor, former senior advisor to president george w. bush karl rove. thank you so much for coming back on the show, carl. >> you bet. thank you for having me. melissa: the big question, does it all translate into votes? what do you think? >> typically a strong debate performance in the first debate does translate into a an improvement in the numbers for a particularly for a challenger. how big a an improvement depends upon the arc of the entire debate series. we won't know exactly until the final debate. if you look at it in seven out of the last nine presidential debates series, the challenger party has
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benefited, the incumbent party benefited in two of nine. how big the advantage gets to be depends upon the arc of the entire debate performance but the first sets tone. i think the tone was set quite well by governor romney last night in his campaign. melissa: what do you think he has to do in the second debate? has he now raised the bar so high? people that support him are so jazzed how he did but does you have to come out blazing again? >> he has to come out and give another good debate performance. it is not his supporters he is aiming at. 58 million people turned in last night. 10% up from four years ago. the number may be higher. doesn't include c-span, pbs and online. could be almost 60 million people. half the number of people that voted in november. he was particularly stronger in the beginning. viewership is higher at beginning of the program. beginning of the program also sets the tone.
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he was very strong in his opening statement. the object was to reassure the undecided voters, i have a plan the plan is common sense and practical. i'm going to be bipartisan. i will bring the country together and try to do the big things that will make your life better, increase paychecks an jobs. i think he did a good job of it. if you look back at it, the biggest pickup in a presidential debate was walter mondale in '84 picked up less than four points. governor bush of texas in 2000. john kerry in 2004. governor ronald reagan in 1980 all picked up three points in the polls from the beginning of the debate ceres to the end. reagan only hat one debate. the first debate is the one that tends to set the tone. melissa: it sets the tone. he got a lot of good details out people were looking for. we have a full screen that shows his tax plan. he showed that he wanted across the board tax cuts for everyone. to make it revenue neutral depends on economic growth
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across the board. i believe in that. if you lower taxes that increases growth. that is the school of economic thought i studied. do you think the average american person believes if you lower rates across the board you can keep revenue the same or even raise it, if the economy agrees? >> well i think they believe that if, with the important addition that governor romney laid in there which was, he was going to in essence, pay for it, to make it revenue neutral, close loopholes, deductions, credits for the wealthy. average american looks attacks system, finds it too cumbersome, too expensive. and believes it is riddled with deductions and loopholes benefit the wealthy. that sinks with the populist attitude of americans. he made the point we're in bad economic times. now is not the time to raise taxes on anyone, particularly small businesses which, i think was very attractive feature of last night's debate. melissa: i was surprised in learn in the wake of the
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last night's debate, president is outspending romney two to one. how come crossroads is not in there. >> this week for example, crossroads announced a $12 million tv buy in seven states. we're spending a lot of money helping to even it up as best we can. if you like to make a contribution? melissa: no. but i would like to do before we go can i play for you my favorite sound bite from the night, how he responded, using the example of having five boys. i think all parents can relate to this comment. let's play it real quick. >> i got five boys. i'm used to people saying something that is not always true but just keep on repeating it and ultimately hoping i will believe it. but that is not the case, all right? i will not reduce the taxes paid by high income americans. and i will not, under any circumstances raise taxes on middle income families. melissa: so tell me the truth. do you think that was rehearsed ahead of time or off-the-cuff? it was genius. anybody who has kids, i know
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exactly what you're talking about. >> exactly. when he said that, a smile crossed my lips because i remember my son and the neighborhood boys who would hang around the house and engage in exactly same behavior. he thought about it in advance. there were other great lines. mr. president, as president you're entitled to a plane and a house but not entitled to your own facts. and who was that guy with humor? who knew that mitt romney was funny. there were a couple of moments there where, particularly at beginning he said i'm sure you wanted --. melissa: spend your anniversary with me. that was a good one. >> yeah. but no, look the people got a real good sense who he was. that is what these deweights are like. in 1980, ronald reagan had been depicted as sort of a warmonger came across in the one debate with carter affable, thoughtful, able governor of a big state. you know what? he reassured me. a lot of that happened for
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mitt romney last night. particularly can you sense what is happening in the real world and economy i have to live in? people walked away last night, got a plan and knows what is going on. melissa: carl, we've got to jump. thank you so much for your analysis. >> you bet. thank you. melissa: even the democrats said the president's performance last night was not up to par after all the spin began after the debate. i was glued to my twitter feed. democrats were instantly depressed watching it live. it was their raw reaction. we have mark hannah, former presidential aid to john kerry and thanks for joining us. i was particularly interested in responses real time before you get analysis who won and lost before people like myself pick out sound bites i wanted to see real time what people were thinking. you saw as we went along, we have democrats were getting a little depressed during the debate. what do you think?. >> i think democrats were definitely trying to cheer on the president.
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absolutely did we see us democrats, did we see mitt romney giving extremely slick performance. definitely, definitely. there, many polls show democrats aren't as enthusiastic about the results as we hoped we would be. but the fact. matter is, mitt romney has been rehearsing for this since june. so, you know, he has been preparing and preparing more than any other presidential candidate in modern history and --. melissa: i love a president that does his homework. i want to hire someone to be ejoe of the country who does his homework. i don't know that is fault. >> absolutely, melissa. he doesn't have as much time to do homework busy running the country. absolutely did mitt romney win on style points? that's for sure. people like us we talk about this. we're treating this like boxing match. absolutely romney had a couple good sinkers and couple good punches in there. when they go to the polls --. melissa: where did you see he failed on substance? what would you point to you
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didn't like on substance? >> you brought up the sound bite about his five boys and, how people repeating things over and over. melissa: right. >> mitt romney repeated over and over he wasn't going to decrease taxes on the rich. that is simply not true the wealthiest americans will pay, over $250,000, less under a romney plan --. melissa: he was arguing about the exact math. that $5 trillion number. i think he has been very straightforward he will lower tax rates for everyone. >> sure. melissa: the exact thing he was fighting about if you could make that up by closing loopholes. in fact that was a great segue. we have a sound bite from the president on that. let's listen to him. we'll talk about it on the other side because i want to talk about the substance here. let's listen. >> governor romney's proposal that he has been promoted for 18 months calls for a $5 trillion tax cut on top of $2 trillion of additional spending for our military. and, he is saying that he is going to pay for it by
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closing loopholes and deductions. the problem is he has been asked over 100 times how you would close the deductions and loopholes and he hasn't been able to identify them. melissa: and he went on to say in a different spot, actually it is not possible to come up with enough deductions and loopholes that only affect high income individuals to avoid raising taxes and burdening the middle class. we've been all looking at all day to look at the math. the difference is, whether you think the economy is going to grow when you lower taxes or not. >> right. melissa: that is the essential difference. do you not believe the economy grows when you lower taxes and does the president not believe that? >> does the economy grow is one thing. also where are we going to pay for 5 dal trillion tax cuts. melissa: with the economy growing drives more revenue people earn more money and make more taxes. >> that is up is shun. melissa: that is an assumption. do you believe that or not? do you not believe that. >> do i think when you roll back taxes the economy grows in the long term? absolutely. but in the short term people are hurting right now do we
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need to invest in middle class policies, if we, let's look attacks he is proposing on reducing. if mitt romney decreases across the board 20% tax cut he is proposing things like mortgage interest deduction middle class families enjoy those things have to be on the table. you can tell, if you roll back taxes on the rich for, you know, things like --. melissa: taxes on everybody. looking on the screen. every single tax bracket there. >> i know. aside from income tax he also proposing rolling back the dividend income tax, carried interest deduction. capital gains. all these things that predominantly wealthier americans benefit from. so you end up having to saddle, and so when you, when mitt romney talks about closing loopholes we need which loopholes those are. president's one good zinger, mitt romney you're talk about all these different things. when will you give us deductions you will close. what loopholes? are they too good you're
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keeping them secret because they're too good for us to hear. melissa: i'm glad you found something you liked about the debate. thanks for coming on. we appreciate it. >> thanks, melissa, i appreciate it. melissa: hear is the question of the day, what was your favorite moment from last night's debate. facebook.com/melissafrancisfox. follow me on twitter at melissaafrancis. gas stations in the los angeles area are shutting down over supply shortages. will the pumps near you be next? >> u.s. sanctions could hit iran where it hurts most, the currency. the rial lost a quarter of its value just in the past week. did you know that? it is causing riots in iran. we're following developing story. more "money" coming up. ♪ . ♪
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♪ . melissa: so there is potential catastrophe in the making at california gas stations. the shutdown of a refinery for a pipeline is cause aghast shortage. some stations are closing their pumps. for those open, the average price of a gallon of regular gas today reached $4.32. that is 50 cents higher than
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the national average the could this spread across the country? to put it all in perspective i'm joined by oil expert steven schork. editor of the schork report. you are one of the smartest guys on this stuff. sort it out for us. what is going on in california right now? >> what is going none california is the same situation we're seeing elsewhere around the country. we have very low supplies of gasoline. then a remeanry complex that has been plagued by a ceres of disruptions for the past month. in short we have the inability to supply a market already short of supply. now, we're reaping what we've sewed over the last couple of years. melissa: so sound like it could get even worse. i'm reading articles about a costco in simi valley, they don't have any gas left. they're having to sell super for the regular price. >> yeah. melissa: because they're out of super. they're trying to make good for the customers. for the little guys, they can't take a loss like that. is this going to get worse and continue and spread? >> it will get worse for at
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least another week, another two weeks. potentially to the end of this month especially for the smaller guys, retailers in southern california. keep in mind, being a retailer in gasoline is a very tight margin business. very difficult in a normal market to make money. in this market it is absolutely impossible. now going back, end of october, retailers in california or southern california still have to sell a summer grade gasoline. melissa: right. >> this is exacerbating the shortage. now as you look forward what is really scary, melissa the term structure. we're seeing winter gasoline being priced on futures market, this winter gasoline which is cheaper gasoline to manufacture, it is trading a premium to next summer. >> that is amazing. >> a clear indication the market is concerned about the availability of supply in the short term. melissa: so the mark, this is, you know going to have a long-term effect, the market is really concerned, the reason why this is important story to everybody across the country, not just to people in california, is
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because, this was brought on ourselves. this is a function of the summer blend, of the environmental standards in california. of all this special, things that they put into this gas, to, for california. has made it so scarce. it created these sort of bottleneck problems. it is an important lesson to the rest of the country, right. >> indeed it is. we have all of these boutique fuels out in california. what you have to do is keep the fuel segregated in the tanks, in the pipes. now the infrastructure is just so big that when you continue to slice and dice for all of these little boutique markets, hey, that's fine but you're going to have to pay for it. socal important is actually reaping what it sewed but that doesn't mean it can't happen elsewhere. look, i'm here in philadelphia. i'm watching the death of the epicenter of east coast refineries die right in front of my eyes. this is going to have, when you continue to price out refineries here in the united states, that is when you continue to hamper our
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ability to turn crude oil into what we need, what is that going to do? it will limit supply and drive up price, of course. melissa: once again, why are these refineries getting squeezed and going out of the business? for the average american out there watching, that seems insane. we see the price of crude oil is so high. price of gasoline is so high. you assume refiners are making a bunch of money. >> well, for the most part on the east coast refiners of gasoline is expensive but it is not expensive enough because the margins, again simply are not there. melissa: creepy. >> when we're talking about global oil at $115 a barrel, $120 a barrel, we're not getting the net back or refinery is not getting the net back on retail. so, the are some refineries making a lot of money, especially in the central part of the united states where oil is plentiful and therefore cheap. but, for the most part what we've learned over the past five years that u.s. refineries, which are the most sophisticated
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refineries in the world, still having a difficult time making end meet and they are acting, is closing their units in accord to the margins. melissa: it is a very complicated story but it is important to bring it to our viewers because, you know, we all depend on gasoline one way or the other, whether because we buy food at grocery store, that is how it gets there and people drive a car and need to know what is going on. thanks for coming on. >> great to be here, melissa. melissa: time for today's energy report when we break down the biggest headlines affecting the industry and their impact on the economy. in last night's debate mitt romney said ending the oil industry tax breaks would be on the table if the corporate tax rate is lowered but the american petroleum institute says ending those deductions would hit small production companies especially hard, raise costs, and reduce production. in other words, bad idea, they say. in a letter to the governor of alaska a trio of energy companies are moving forward to build a natural gas pipeline that would export
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liquified natural gas from asia to a -- from alaska to asia. conoco-phillips, tran canada joined forces with the project. it will cost $65 billion but might not be ready for 10 years. in a nod to the booming energy industry, booming shale and gas production will give u.s. rerefineries advantages over others around the world. fracking in unconventional shale will push refiners into higher utilization rates. the challenge? getting fuel from the field toe the refineries. crude oil futures rallied today. look at that. 4%. that is a massive rally. they were rebounding as shares dropped in a previous session. crude climbed 3.7%. look at that. it climbed 4.5%. but it was higher by $3.57, to 91.71. closing up over $91 a barrel. riots in tehran as iran's currency is collapsing. thery al he is value -- reel
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down 70%. can you imagine if that happened to the dollar? what is coming up next in iran. the post office defaulted on another $5 billion plus payment. the postmaster general is here for a exclusive interview. i have a business plan to share with him. he will evaluated. do you ever have too much money? ♪
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♪ . melissa: so you saw it here yesterday the iranian economy is collapsing. people are taking to the streets to protest hyperinflation and stockpiling food. the police are blocking off streets to prevent riots from spreading. will iran's own economy bring down the ruling rage game? joining me fox news national security analyst, kt
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mcfarland. thanks so much for joining us. i was shocked to see inflation, suddenly take hold in iran. we're looking at milk, the price of milk going up 9% in one day. rial has lost 70% of the its value. why is this happening all of a sudden? is it just the sanctions? >> i think it is accumulation of things. more importantly why are people taking to the streets? >> yeah. >> what is going on? iranian government new sanctions were coming. we announced it six months in advance. they started stockpiling. families started stockpiling. they started hoarding dollars. that's why you didn't see it earlier. why is it breaking out? because iranian people that is where the arab spring started in 2009. the administration did not, the obama administration didn't encourage it. in fact just the opposite. then the arab spring restarted two years later in tunisia, morocco and egypt, et cetera, et cetera. melissa: yeah. we're reading about people, you know hoarding milk, hoarding bread. not buying meat because they
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don't want to waste their money on it. we see pictures i'm sure we'll show you of people in the streets rioting. we had several people on yesterday said we don't want to topple this regime. that is not in america's best interest. is that true? >> i don't think so. there is one argument out there with trying to topple the regime, all the demonstrations the regime will double down on efforts to get nuclear weapons. i'm a big believer, you have two crummy options with iran. bomb iran and start a regional war. let iran get a bomb and have nuclear arms race. there has to be a third option, economic warfare and that's what we're using. melissa: how does that proceed? what is the best case scenario? what should we be rooting for? >> we should root for toppling this regime. why would they think it is their necks?. one would be military action. if they have people storming the streets, that sounded totally unreal listic three
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years ago. look what happened throughout the middle east. everyone dictatorships has been to pelled by people going into the streets. if we get people back out to the streets of iran again to topple their government. at end of the day, melissa, iran will get nuclear weapons. melissa: how does that play out? how do we know the new guys come in won't build nukes? >> hard to think the new guys would be worse than the current guys. melissa: i don't know. if you look at some of the things happening in the rest of the middle east. seems like egypt, we thought it would be better. obviously become a huge challenge. libya, you look what happened to our ambassador there. i'm not sure the arab sprinkles where worked out for america. >> i would agree but iran would be the one exception because it is so bad now, it is hard to think it gets a whole lot worse and it is worth the chance. at end of the day it is not even iran getting nukes we worry about, this iran. this iran that says we'll obliterate israel, we'll wipe out the united states. we in previous administrations were helping the iranian nuclear programs,
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not once the mullahs took charge. melissa: thank you for your insight. i'm putting my economics degree to work helping save the u.s. post office. the postmaster general will join me next in a fox business exclusive. i can't wait. we're starting to see impact of the drought on harvest. will food prices be as bad or even worse than we told you? we'll give you details straight from the farm. piles of money and hay coming up. ♪ . look, if you have copd like me,
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♪ . melissa: post office finding it harder and hearter to deliver. just the other day the agency defaulted on $5.6 billion payment for foot rush retiree health benefits. this is second time in a year it defaulted on
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benefits bringing total to staggering $11.1 billion. what will it take to save the u.s. pose al service? joining me now in a fox business exclusive, is patrick donahoe, the postmaster general. patrick, great to see you again, as you know i'm not really kidding about this. see the post office as a great business to be right-sized. i think you're the guy but congress won't unleash you to do it. i have a four-step plan. i will walk you through it. tell me if i'm crazy or this would work. i want to focus what is making money. you have a lot of good stuff people like. four wedding stamps that made a billion dollars. did baseball player stamps that are total blowout. i'm not baseball aficionado but apparently they were fantastic. i love priority mail. you have got some good tough stuff right and focus on those businesses and cut some of the stuff not
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working like regular mail? what do you think? >> hear is the plan. we have a five-year business plan, some things you talked about are exactly some things we would should be focusing on. first up, we have legislation pending in congress, the major driver what our whole financial issue is what we taued about, prefunding retiree health benefits. we don't disagree we should do it, and responsible thing to do. we want to spread the payments out to make them much more reasonable. we've funded $45 billion and so what we would like to do is take, language written up already in the senate bill which passed. change projections on amortization schedules to make that much more affordable and five day delivery of mail. melissa: i love what you're saying. i don't want to miss any points. start with the prefunding. >> yeah. melissa: if you have to spread out the payments like that that the benefits are too rich? maybe this isn't a modern system and maybe
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people need to look back at promises made and hey, listen this is not a business big enough to support this? you have to make tough decisions what the benefits will really be going forward? not about when you fund it and make the payments. it is about it is too expensive and you can't afford it? >> well the benefits we have as federal employees extend across the entire federal pay schedule. if congress and president decide to change it, we'll work to make those changes. i have to deal with law as it is now. the law says we have a fund a certain amount for retirements and for, for retiree health benefits. we're fully funded on retirements. we're overfunded by $11 billion in one of our accounts. we're trying to fund retiree health benefits, promises to your point made to people and that is part of what we're looking to do to make the law change. melissa: you have to cut labor costs. that is point three. 80% of the your cost is
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labor. you have to eliminate something like 100,000 people. are you going to be able to do that? >> we, in the year 2000, we had 800,000 people on the rolls. today we have 528,000. we already reduced the headcount by about 35 thousand people. we done it through attrition and done it maintaining infrastructure. same number of post office, five days of delivery. our people are much more product they have than they were today. our goal is to get to 400,000. you get 400,000. that is a five-day delivery. that pulls the costs down, makes us profitable and helps to us control long-term liabilities. melissa: so then, finally, i think you sort of have to modernize the original mission of the post office. the idea was that you could buy a stamp and for the same price, deliver a piece of paper everywhere within a reasonable amount of time. maybe you just can't do that. like that's just not a profitable business. you look at fedex and ups making all kind of money. you have great products. you can't really do snail
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mail. there has to be some sort of compromise. either people have to go to one spot in their town to get it and not expect home delivery or close post office. you have to say we can't abide by this original mission. what do you think? >> we are a $65 billion organization inside an $800 billion industry. 35% of all paper ends up in the mail. it is a gigantic industry. we're as big as oil and gas industry in this united states. it is not something that will go away and has a big effect on the economy. clearing up these mandates for prefunding, six-day delivery of mail, i want to deliver packages six days a week. melissa: volume is down 20 to 26% depending which stat you look at in 2006. all studies say we saw the same drop during the depression. you expected it to come back. this time we don't expect it to come back, people use e-mail, electronic billing. it is not going to come back. >> we've already taken those
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costs out. we've already taken those costs out. the big costs are writing a check for $5.5 billion for funding retiree health benefits and $2.7 billion for the six days of delivery. that and a little product freedom we can turn the p&l $10 billion. we can become profitable. melissa: thanks for coming on. this is topic i love. i might come as your summer intern. you better be careful. >> we're looking forward to that. melissa: thank you. are we in danger of food prices skyrocketing what is left of the crops not devastated by the drought of 2012 is coming to market. we're live at the heartland coming next. at the end of the today he is it is about the heartland and stamps ♪
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[ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or make 70,000 trades a second... ♪ reach one customer at a time? ♪ how do you help doctors turn billions of bytes of shared information... ♪
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into a fifth anniversary of remission? ♪ or turn 30-million artifacts... ♪ into a high-tech mastpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it.
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♪ . melissa: this summer a he is drought wreaked havoc on corn an crops over much of the country, sparking fear of sky-high food prices an even some shortages. soybean and corn crops harvesting almost two weeks ahead of schedule but what is causing the early crops and what does it mean for
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prices at grocery store? joining me directly from his family's found in illinois is train group senior vice president of derivatives, scott shellady. thanks for coming on the show. glad to see you're wearing the jacket even though you're out in the middle of the field. >> i can't be seen without it. melissa: tell me about the crop. so it is coming up so much earlier this year. i'm looking stats 41% of soybeans are harvested compared to 15% at the same time last year. is that bad? i mean why does that happen? >> well, there's good news and bad news. you know, i got out of the combine with ken, guy doing our fields here. the reason why we're getting in so early and getting done so quickly, one, the crop went in early. it is so dry we're not having to worry about mud slowing us down at harvest. it has been so dry a good thing for getting it out of the ground. looking forward unless we get real precipitation by end of november, when this ground freezes we could face this exact same problem next
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year. what doesn't change is demand. if demand doesn't change we could be in trouble next year. there are real worries in the fields. we're glad we can get the corn out of the ground quickly. you know what will? we still need a lot of drain. it is still dry. melissa: what is the yield like? is it what you expected? how does it compare to last year? >> we're 50% off last year's yield. as i said on the combine earlier today, a little counter tells you what your yield is getting right then and there almost real time. pretty ghoul that way. what we expect normally outfield is 200 bushels an acre and coming across between 100 and 120. 40 to 50% off last year's numbers. if that happens again, we doesn't have any soil moisture level out of the taken it out for this year. next career we've got nothing. melissa: you're saying less after yield, the crop is smaller, prices are dropping. why is that? >> you know why? we're so high, melissa, we're only buying what we need at the moment. volumes have been thin.
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so it is easier for prices to trade lower because no one is in there to step in. let me tell you. we don't have anybody making plans anything going two years out. if you need the corn buy it today. if you don't need it today, you're not buying it today. that is the real problem. all the hand to mouth trading going on. that depressed volumes. that is hard for the corn market to stay buoyant for a long time. melissa: what us did it mean for consumers down the road, next month, two years, one year, what do you see? >> prices at table will be 3% and 5% higher going towards christmas. if we don't get any significant precipitation between now and christmas or now and thanks i have abouting you could see subsoil moisture levels severely depleted. if we don't get timely rains that would hurt. you could see prices 10 to 15% higher next year than this time around. melissa: so great to see you out the field. we talk to you in the futures pit we know you know the market. i don't think our audience
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knew you knew commodities from every side. you're a farmer. you're a trader. thanks so much for coming on today. we appreciate your insight. >> no problem. no problem. melissa: so check this picture out. it is one of the funniest halloween costumes i have ever seen. it is based on a story we've been following closely here on "money". we'll tell you what it is. that is coming up next. it is a little trivia for you. you can never have too much money or too much fun. come on. ♪ want to try to crack it? yeah, that's the way to do it! now we need a little bit more... a little bit more vanilla? this is great!
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♪ . melissa: so it is time for a little fun with spare change. today we're joined by fox news legal analyst mercedes colwin. our very own david asman. thanks for joining us. you guys were rocking out there. shaking the whole set. one of you guys was. last night's debate was not all about the issues. there are some other very important things to know and unfortunate -- fortunately we're covering it all. in a survey we now know that 59% of people watching liked president obama's tie. better than mitt romney's real quick. remember what colors everybody was wearing. >> absolutely not. >> i heard it on fox radio. >> what wasn't. melissa: president obama was wearing blue and mitt romney wearing red. that is the beginning.
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52% thought romney's hair looks better. >> he has nice hair. little gray. melissa: they both have good hair. 51% thought that the pet's makeup looked better. how do you judge that? could you really even tell? i don't know. close calls. who looked better? >> i couldn't tell. i knew what you were going to ask us. bomb, obama was looking down so much. whenever romney looked at obama he would square up with obama, obama was looking down and couldn't tell what he was wearing or what he looked like. melissa: what do you think. >> i think the same thing. the demeanor played a lot who looked better on debate. melissa: i wonder how do they decide who wears red, blue, red state, blue state. red is power. blue is calming? >> i never like that designation, democrats blue as republicans red. i think conspiracy by the left-wing media is red is angry color. look at me i'm wearing red right now. melissa: what color tie
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would you wear if you were in the debate? >> i don't know. melissa: yellow. >> demeanor you have that is important.
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one. need a free vacation? jetblue is offering supporters of the losing candidate in the legislation free flights out of the country. this is pretty funny. participants who register who they're voting for in november, are automatically entered to win a free flight to mexico, south america, or the caribbean islands. so you guys going to sign up for this? very funny. say who you vote for. if the other guy wins then they let you get out of the country. >> the motto is live free or fly. take off on new hampshire. >> i think it is awesome. i pick turks and caicos. >> you always hearing people will do this. remember in 2000 george bush was elected, barbra streisand and susan sarandon, couple others said they would move out. they never did. melissa: no. >> i think round-trip tickets or one way? >> i think one way. melissa: we're talking about jetblue. that is what they wanted. congratulations, jetblue.
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this one is hilarious. arnold schwarzenegger former governor of california revealed debate strategy in the 2003 recall. he was up against arianna huff fimg ton. >> when we got into the details i rather use comedy and humor. that is why arianna huffington played into all my stuff. she is perfect. she is whining. arnold you always do this, and you're table. you're making so much money. melissa: that is pretty good impression. who knew, sort of like double accent there with him trying to do the arianna huffington. >> i happen to know her. i known her for 20 years. i knew her when she was conservative by the way. she was to the right of newt gingrich. she really was. melissa: what happened. >> that is a good question. her head spun one way and turn ad-lib ral. how many times will it spin. maybe she needs a cold shower to figure out which
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direction she had should be looking in. >> the schwarzenegger schnitzel he called himself. the schwarzenegger schnitzel. melissa: take a look at this. this is rare $5 bill given to vice president charles fairbanks in 1905. it is expected to sell at talk shum for $300,000. what do you think about that? it is a $5 bill worth 300,000. look how cool. i didn't even know that the $5 bill looked like that at one point. >> who knew fairbanks was a vice president. have you ever heard of fairbanks before? never. melissa: i was worried about that. >> you know all those things. melissa: no. i was a little concerned that wasn't right because that didn't look familiar. >> how many people though are wondering and hoping and praying when their house is torn down and doing renovation you find something between the walls like that? melissa: yeah. this just in. he was the vp under theodore roosevelt. look at this. >> is he from

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